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Bivariate GARCH estimation of the optimal hedge ratios for stock index futures: A note

✍ Scribed by Tae H. Park; Lorne N. Switzer


Publisher
John Wiley and Sons
Year
1995
Tongue
English
Weight
385 KB
Volume
15
Category
Article
ISSN
0270-7314

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✦ Synopsis


2Cecchetti, Cumby, and Figlewski (1988)

apply ARCH in estimating an optimal futures hedge with Treasury bonds. Baillie and Myers (199 1) and Myers (1991) examine commodity futures and report improvements in hedging performance over the constant hedge approach by following a dynamic strategy based on the GARCH framework. Kroner and Sultan (1991, 1993) find similar results with currency futures.